House flipping, rental property investing, wholesaling, and every other type of real estate investing has had an incredibly profitable run-up over the past two years. Days on market shrunk as buyer demand soared and supply dried up. Flippers, rental property investors, and everyone in between saw profit margins they couldn’t have imagined before. But, now that may all change.
Rising interest rates have stopped many would-be homebuyers from making offers, forcing them back into renting instead of sending in over-asking bids. Now, home equity and flipping profits are starting to see a lag, as mortgage applications significantly slow down, showings become far less crowded, and price cuts become the new norm. Are we at the beginning of a real estate recession, and if so, how can we best prepare to still profit during the downturn?
James Dainard, master flipper, investor, and “On The Market” guest, has had to readjust almost every way he analyzes real estate deals. He’s managed to cash in some serious flipping profits over the past two years but understands that this year will be different. He shares exactly how smaller landlords, real estate investors, flippers, and wholesalers can “pad their profits” so they don’t get burnt on their next real estate deal.
Dave:
Welcome to On the Market, everyone. Today, we have certified deal junkie, James Dainard, joining us to talk about a super important topic that is on most people’s mind right now, which is what does a good deal even look like in 2022. But before we jump into that super interesting topic, James and I are going to be talking about some confusing and often contradictory data coming from the housing market right now.
Hey everyone, welcome to On the Market. I’m Dave Meyer, real estate investor and VP of Data and Analytics at BiggerPockets. Joining me today from Seattle, we have James Dainard. James, how are you?
James:
I’m doing well, man. Just try to keep up with this market right now.
Dave:
Yeah,…